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2018 (6) TMI 1270 - AT - Income TaxAddition of interest expenses under the provision of Section 14A r.w.r. 8D.- sufficiency of own funds - Held that:- As the owned funds of the assessee exceed the amount of investment. In such facts and circumstances, a presumption can be drawn that the investment has been made out of the owned funds of the assessee. See THE COMMISSIONER OF INCOME TAX VERSUS RELIANCE UTILITIES & POWER LTD. [2009 (1) TMI 4 - BOMBAY HIGH COURT] -no disallowance of interest expense claimed by the assessee can be made under the provision of Section14A of the Act r.w.r. 8D of IT Rules - Decided in favour of assessee Addition on account of professional fees - services availed from Chartered Accountant about its investments activities - AO was of the view that such expenses are unreasonable as per the market rate - Held that:- The genuineness of the expenses has not been doubted. The payment was made through banking channel. However, as per the lower authorities, the expenses claimed by the assessee were unreasonable and exceeding market rate. However, before us, none of the lower authority has brought on record to justify the prevailing market rate for such consultancy fees. Thus, it appears that the disallowance has been made on the estimated basis on the surmises and conjuncture of the AO. In these circumstances, we are of the view that the estimated disallowance is not sustainable in the eyes of the law. See ANIMESH SADHU, C/O. SHRI SOMNATH GHOSH, ADVOCATE, VERSUS ASSISTANT COMMISSIONER OF INCOME TAX, CIRCLE-1, AAYAKAR BHAWAN, DIST. HOOGHLY [2014 (11) TMI 1170 - ITAT KOLKATA] - we delete the addition made by the lower authorities - Decided in favour of assessee.
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